Key points:

• - Corporate activity in New York State fell sharply to -43.7, the lowest level since May 2020。
• - Significant decline in new orders, shipments; decrease in outstanding orders; slight decline in employment and work week。
• - Input prices rise and sales prices are stable。Activity drops to lowest level since outbreak

According to the Empire State Manufacturing Survey for January 2024, business activity in New York State fell sharply。Overall business conditions index fell 29 points to -43.7, the lowest level since May 2020。

This decline was reflected in new orders and shipments, both of which showed significant declines。Outstanding orders continue to decrease significantly and delivery times are shortened。Stocks were slightly reduced, and employment and average workweek also showed slight declines.。

Input prices have accelerated in growth rates, while sales prices have remained relatively stable。Despite expectations of improved conditions over the next six months, optimism within the manufacturing sector remains cautious.。

Overall index falls sharply

New York state manufacturing activity contracted sharply in January 2024, with the general business conditions index falling 29 points to -43.7, the lowest level since May 2020。This sharp decline was reflected in the new orders index, which fell 38 points to -49.4, and the shipments index, down 25 points to -31.3。

These figures indicate a significant reduction in new orders and shipments。The unfilled orders index remained at -24..2, indicating a continued significant reduction in outstanding orders。Meanwhile, the inventory index is -7.4, indicating a slight reduction in inventories and the delivery time index remains negative -8.4, indicating that the delivery time is shortened。

Employment and man-hour contraction

The number of employees index remained relatively stable at -6.9, with an average work week index of -6.1, indicating a slight decline in employment levels and hours worked。

On the price front, the price index rose seven points to 23.2, indicating a slight increase in input prices。Instead, the price index remained stable at 9.5, indicating that sales price increases remain moderate。

Cautious optimism prevails

Despite expectations of improved activity in the coming months, optimism within the manufacturing sector remains cautious.。The Future Business Conditions Index rose seven points to 18.8。

In addition, the capital expenditure index rose 10 points to 13.7, said investment plans improved。